Forex Outflow Develops In Russian Banks

Forex Outflow Develops In Russian Banks. Sberbank and VTB banks, the two largest state-owned banks in Russia, both experienced strong outflows of foreign currency deposits. The deposits occurred as the ruble is experiencing depreciation. There are also worries that new sanctions imposed by the United States could harm the ruble. The development has caused the value of the ruble to drop when compared with other currencies, although that drop is more pronounced surrounding the American dollar than it is with other currencies.

The outflows come as the value of the ruble has dropped dramatically in recent time. The RUB/USD pair is listed at 0.015 at this moment. The pair was closer to 0.0178 at the early part of the year. But the drop in the value of the ruble became more pronounced during the early part of August as the currency quickly dropped by 0.001 in value, one of the sharpest to come along.

The drop is among the lowest values for the ruble in recent time. This is especially minimal when compared with the original value of 0.030 that the pair had in 2014. The decline in the RUB/USD pair is the largest that the currency has experienced in recent time and is expected to influence how the pair is traded in the future.

Advertisement

The outflows of forex deposits in Russia comes as the United States may potentially add new sanctions. Many of Russia’s state-owned banks would be at risk of being harmed by the development of new sanctions. Part of this comes amid the United States’ interest in trying to reduce the Russian influence in many functions within the field.

The foreign currencies that people hold in Sberbank have dropped in value by about a billion dollars. The total has gone down to $33 billion in August. The corporate FX deposits fell by $2.2 billion down to $55 billion. Much of this is due to both the demand for currency during the summer holidays and the worries about new American sanctions. People had been taking out their currencies during this period.

Not all banks in Russia have experienced such declines in their forex values. Rosselkhozbank, another prominent state-owned bank, saw its corporate FX deposits increase in recent time. The deposits rose in value to $6.38 billion at the end of August. There was an increase of $160 million in the value of the deposits.

In terms of its relationship with other currencies, the ruble has experienced a slight drop, although that drop is not as intense as what was experienced in the United States. The RUB/GBP pair saw a quick decline this week from 0.01168 to 0.01145. The sudden drop ends a bull period where the value of the currency pair had been rising. The pair was down to 0.01089 at the start of September and had experienced some periods of growth with the value staying consistent for days on end throughout that month.

Details on the new sanctions that the United States would impose on Russia are unclear. There are beliefs that these sanctions would entail changes in trade actions or new taxes that may be imposed.

STAY CONNECTED

RECEIVE A FREE CONSULTATION FROM OUR FX COURSE EXPERTS

Vladimir Ribakov, supported by an experienced team of trading professionals, offers the world’s leading FX education courses. Our unique and proprietary approach to Forex education has enabled thousands of traders worldwide, from the complete beginner to the advanced professionals, to enjoy long-term sustained success in trading.

Our team is now waiting to call you.

When will be the most convenient time to contact you?

If we miss you at the requested time, do you want us to call during the weekend ?
Yes

MORE LINKS

FTC Compliance: All Feedback and Testimonials on this website (Vladimir Ribakov / vladimirribakov.com) are genuine and FTC Compliant. No incentives have been provided to obtain the testimonials.

All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice. Vladimir Ribakov (vladimirribakov.com) will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals.
Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Online trading involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We are required to tell potential investors that our software's past performance does not necessarily predict future results, therefore you should not speculate with capital that you cannot afford to lose.

HIGH RISK INVESTMENT WARNING: Online trading is highly speculative, carries a level of risk and may not be suitable for all i nvestors. You may lose some or all of your invested capital, therefore you should not speculate with capital that you cannot afford to lose. Please click here to read a full risk warning.

Vladimir Ribakov (vladimirribakov.com) is a trading name of Vladimir Ribakov (vladimirribakov.com), a Education Services Company. Vladimir Ribakov (vladimirribakov.com) does not gain or lose profits based on your trading results and operates as an educational company. Vladimir Ribakov (vladimirribakov.com) is not a Financial Services firm and does not operate as a financial services firm.

SITE RISK DISCLOSURE: Vladimir Ribakov (vladimirribakov.com) does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in trading may not be suitable for all investors. Vladimir Ribakov (vladimirribakov.com) doesn't retain responsibility for any trading losses you might face as a result of using the data hosted on this site.
We have placed cookies on your computer to help improve your experience when visiting this website. You can change cookie settings on your computer at any time. Use of this website indicates your acceptance of this website's Privacy Policy.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.